Why buying bitcoin directly is better than investing in crypto mining stocks, based on this valuation model

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Shares of bitcoin miners are too high compared with owning the cryptocurrency outright, according to Sam Doctor, chief strategy officer at digital asset...

Shares of bitcoin BTCUSD miners are too high compared to owning the cryptocurrency outright, according to Sam Doctor, chief strategy officer at digital asset financial services platform BitOoda.

Shares of bitcoin BTCUSD miners are too high compared to owning the cryptocurrency outright, according to Sam Doctor, chief strategy officer at digital asset financial services platform BitOoda. The same framework can be applied to crypto mining too, according Doctor. Public bitcoin miners, on average, trade at an adjusted enterprise value per bitcoin in reserve of $47,872, or 96% of bitcoin’s recent spot price of $47,700, according to the BitOoda report. Its ratio is much higher than in the oil or gold industries, Doctor noted.

“The stocks will do well if the [bitcoin] price goes up. But out of that mining reserve, miners have to pay for the electricity, the people, and they have to pay to replace machines as the new generations come out,” Doctor said.

 

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I see Bitcoin becoming a top reserve currency for banks, playing much the same role as gold did in the early days of banking . . You guys should Follow CedYoungelma he knows his stuff when it comes to BTC and other Cryptos, his tweet have been really helpful over the years🚀

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